How Much Poor Customer Service Costs Your Business

Salesman delivering bad customer service over the phone

Poor customer service may be costing your business a lot more than you think! Repeat business, new business, and even in-progress transactions are all seriously impacted by a bad interaction. And because customers will share their experiences on the internet, as well as in person, even one instance can be costly.

Each year, businesses lose around $62 Billion to poor customer experiences. That’s revenue that’s practically given away!

What is Bad Customer Service?

Any time a customer, potential customer, or past customer interacts with your business and is left feeling dissatisfied, that’s bad customer service. Poor customer service can happen in person, over the phone, on your website, or any other way you interact with your customers.

Examples of Poor Customer Service

There are so many different kinds of poor customer service, but there are a few kinds that most of us have experienced.

  • Not getting to talk to a live person. Whether you’re stuck on hold, can’t navigate their phone menu, or keep getting tossed around between departments, you’re going to have a bad time.
  • Lack of care from employees. When even one employee doesn’t really answer your questions, or doesn’t really seem to care, it can feel like the entire business doesn’t care.
  • Pushy sales staff. If the sales staff has to resort to scare tactics to do their job, or if they don’t know how to take “no” for an answer, it makes the business look desperate and aggressive.
  • Not handling overflow business well. If a company doesn’t have the time or inventory to do business with you, there is a right and a wrong way to deliver that news.
  • Passing the buck. No one ever wants to hear the words “I wish I could help, but it’s company policy.”
  • Being sloppy or tactless. The way you handle a data breach, a denied credit card, or an embarrassing situation for your customer can make a huge difference.

Consequences of Bad Customer Service

  • 95% of customers will share their negative customer service experience with others.
  • By comparison, only around 25% of customers will share their positive experiences.
  • 58% of consumers will never use a company again after a bad interaction.
  • 78% of consumers have cancelled transactions due to poor customer experience at least once.
  • 61% of consumers will take their business elsewhere after a single bad interaction.

Facts about Customer Expectations

  • Around 1/3 of consumers have expressed feeling that businesses are paying less attention to providing good customer service.
  • 7% of consumers say that their customer service expectations are usually met ir exceeded.
  • Only 1% of customers feel that their customer service expectations are always met.
  • 45% of consumers will completely abandon an on-line transaction if their questions or concerns are not answered quickly.

What a Positive Experience Means to Revenue

  • 52% of consumers have purchased more from a company after a positive customer service experience, and 62% of B2B customers have purchased more after a good interaction.
  • 33% of consumers would recommend a brand which provides quick but ineffective response
  • 70% of buying experiences are based on how the customer feels they are being treated

What are Loyal Customers Worth?

Loyal Customers Are…

  • 5 times as likely to repurchase
  • 5 times as likely to forgive
  • 4 times as likely to refer
  • 7 times as likely to try a new offering

Some Keys to Creating a Good Customer Service Experience

Engagement. Every interaction should make the customer feel like they’re being listened to, and that their business is valued. Businesses that provide good customer interactions are those who take the time to get to know their customer and make the customer feel they are valued.

Accountability. Nothing will turn a customer off faster than a business that won’t accept responsibility for a mistake. Beyond that, the business must be prepared to correct the problem with as little customer effort as possible

Responsiveness. If a customer tries to reach out to discuss a problem, a question, or a concern, they shouldn’t have to wait an undue amount of time for an answer.

Courtesy. Never underestimate the value to the customer of simple things like saying “Please”, “Thank You”, and “Is there anything else I can help with today?” Customers notice that, especially when it feels genuine.

Are your customers being delighted when they call your business?

Taking that first step to providing a quality customer service experience is as easy as contacting us to discuss our phone call answering and virtual receptionist services!

We can cover your phone calls, scheduling, and customer interactions for less than you can hire someone. And because delighting customers is our business, your business will shine! We specialize in answering services for HVAC contractors, roofers, plumbers, electricians, pest control services, and more.

Gain your own top notch customer service team for less than you can hire one full time person. Get started today!


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